During the annual performance review season, it’s customary to follow a predictable script: summon each of your direct reports into a conference room, hand them an official-looking document, and engage in a repetitive dialogue. You offer some commendations on their strengths, interspersed with critiques of their weaknesses, and wrap up with an attempt to bolster their confidence. Yet, this often results in a mixed message, leaving even your top employees feeling disheartened. However, by adopting a different approach to performance reviews, they can transform into valuable opportunities to acknowledge the achievements of your high performers and guide underperformers toward improvement.
Insights from Experts
Performance reviews tend to be the most stressful conversations of the year for both employees and managers. “Assessing someone’s performance is inherently uncomfortable,” says Dick Grote, author of “How to Be Good at Performance Appraisals.” James Baron, the William S. Beinecke Professor of Management at Yale School of Management, advocates for ongoing evaluation and regular feedback, coupled with a deep understanding of employees’ goals. Building a relationship based on candid feedback and aligning with their career aspirations can make performance reviews less daunting and more fruitful. Regardless of the appraisal system in place, several strategies can enhance the process.
Establish Clear Expectations Early
The performance review process doesn’t commence with a conference room sit-down; it starts by setting clear expectations and evaluating performance throughout the year. Conduct “performance planning” sessions at the onset of the year with each direct report to outline goals and expectations. This clarity not only improves performance from the outset but also empowers you to hold individuals accountable later on. Take time to understand employees’ career aspirations to tailor your assessment approach and offer opportunities that broaden their professional horizons.
Prepare the Groundwork
Two weeks before the review, ask employees to jot down their proudest accomplishments from the past year. This exercise refreshes your memory and shifts the focus to positives, fostering a more constructive atmosphere. Review your notes on their performance, gather feedback from colleagues, and provide employees with their appraisal about an hour before the meeting. This allows them to process their emotions privately, facilitating a more composed and productive conversation.
Set the Right Tone
Rather than employing the traditional “feedback sandwich” method, focus on a more direct approach. Highlight the strengths and achievements of top performers, motivating and acknowledging their competence. For marginal or poor performers, avoid sugarcoating feedback; address deficiencies directly and demand improvement. By eschewing avoidance, you prevent false encouragement and foster genuine growth.
Provide Constructive Coaching
Gauge the perspectives of solid performers to understand their concerns. Use the “stop, start, and continue” model to provide feedback to both solid and poor performers. Identify ineffective actions to stop, commend effective behaviors to continue, and suggest actions to enhance performance further. Offer specific praise and actionable advice, avoiding vague statements in favor of targeted guidance.
Hold Your Ground
Separate discussions about compensation from the review if possible, or share salary information at the outset to avoid distractions. Rank discussions can also be sensitive, especially if most employees fall within the middle rank. Emphasize that meeting expectations is a significant achievement and help employees contextualize their performance.
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